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Granger Products recorded the following transactions for the just completed mont

ID: 2373153 • Letter: G

Question

Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories.

$73,000 in raw materials were requisitioned for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.

Total labor wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor.

Manufacturing overhead costs of $178,000 were applied to jobs using the company%u2019s predetermined overhead rate.

Post the above transactions to T-accounts.

Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories.

Explanation / Answer

DR = Debit, CR = Credit. Letters correspond to transactions. Raw Materials DR (a) $75,000 CR (b) $73,000 Work in Process DR (b) $67,000 (c) $134,000 (e) $178,000 CR (f1) $379,000 Manufacturing Overhead DR (b) $6000 (c) $18,000 (d) $126,000 (g) $28,000 CR (e) $178,000 Cash DR CR (a) $75,000 (b) $152,000 (d) $126,000 Finished Goods DR (f1) $379,000 CR (f2) $379,000 Cost of Goods Sold DR (f2) $379,000 CR (g) $28,000